Acme India Industries Limited (CIN U93090DL2021PLC391603) has filed a Red Herring Prospectus with SEBI for an IPO comprising a fresh issue of 54,07,200 shares and an offer for sale of 8.02 lakh shares, priced at ₹186.00 to ₹196.00 per share. In FY26 it reported revenue of ₹264 Cr (+25.6% on FY25) and a net profit of ₹24 Cr. Promoters hold 88.2% before the IPO. Our earlier look-up of its claims found 5 medium or high concerns across 16 claims looked up.
Read from public SEBI filings; last updated . Not investment advice.
Key signals
Read from the filing. Signals summarise it; they are not a recommendation or investment advice.
5 to review16 claims looked up earlier: 5 high, 0 medium concern.
How we rate these
Valuation: P/E at the top of the band: up to 25x good, up to 40x watch, above that concern.
Growth: Sales growth per year: 20% or more good, 8% or more watch, below that concern.
Profitability: Net profit margin: 10% or more good, 4% or more watch, below that concern. The trend note compares operating margin with the year before (1.5 points either way).
Debt: Borrowings / net worth: up to 0.5x good, up to 1.5x watch, above that concern.
Profit into cash: Cash from operations as a share of net profit: 80% or more good, 40% or more watch, below that (or negative) concern.
One-off income: Other and one-off income as a share of pre-tax profit: up to 10% good, up to 30% watch, above that concern. Any one-off item management itself describes moves "good" to "watch".
Where the money goes: Offer for sale as a share of the whole issue: under 40% good, under 75% watch, above that concern. In an offer for sale the money goes to the selling shareholders, not the company.
Red flags: Earlier web look-ups of the filing's claims: any high-concern finding is concern, any medium is watch, otherwise good.
Rules are rules of thumb, not a verdict: a fast-growing business can reasonably carry a higher P/E, and some sectors run on debt.
The IPO
What Acme India Industries Limited is offering, at what price, and who owns it today. Read from the RHP; anything the company hasn't fixed yet shows as pending.
IPO dates announced
Bidding 30 Sep 2026 to 6 Oct 2026.
Fresh issue
₹106 Cr
54.07 lakh shares at ₹196.00, the top of the band
Offer for sale
₹16 Cr
8.02 lakh shares at ₹196.00, the top of the band
Price band
₹186.00 – ₹196.00
From BSE -- may be revised once the filing states its own band; lot of 600 shares, from ₹1,11,600
2 Repayment and/or pre-payment, in full or part, of borrowing availed by our Company
41
48%
Capex
Funding Capital Expenditure towards purchase of additional plant & machinery
6.3
7.4%
General corporate
General Corporate Purpose
Not fixed yet
n/a
Amounts marked “not fixed yet” are left blank in the draft and are set once the price is decided. The offer-for-sale portion is not shown here: that money goes to the selling shareholders, not the company. Source: page 91
Who owns it
Promoters hold before the IPO
88.2%
As stated in the filing. The full shareholding table could not be cross-checked.
Valuation
At the price band
Low end
High end
Price per share
₹186.00
₹196.00
Market cap after IPO
₹437 Cr
₹460 Cr
P/E (FY26 profit)
17.94x
18.91x
Price / book value
4.22x
4.44x
Price / sales
1.66x
1.74x
Post-issue market cap divided by FY26 figures from the filing. A loss-making company has no P/E. Total issue size at the top of the band: ₹122 Cr. Price band is from BSE; not yet stated in this filing.
Business model
Is Acme India Industries Limited a good business, and why? Its market, industry, edge and team, each rated by a stated rule.
As printed in the filing's summary financial information, converted to ₹ crore.
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.59
Line item
FY24
FY25
FY26
Revenue From Operations
213
210
264
Other Income
1.6
3.5
4.2
Total Income (1+2)
215
213
268
Finance Cost
5.3
9.9
13
Depreciation and Amortisation Expenses
0.64
0.73
0.97
189
189
235
Expenditure
Cost of Material Consumed
11
73
70
Purchases of Stock-in-Trade
127
78
101
Change in inventories of finished goods, work in progress and stock in trade
7.1
-23
3.3
Employee Benefits Expense
14
21
15
Manpower sub-contracting Cost
0.00
0.00
7.5
Other Expenses
25
30
24
Profit/(Loss) Before Exceptional & extraordinary items & Tax (3-5)
26
24
33
Exceptional and Extra-ordinary items - 8 Profit before extraordinary items and tax (6-7)
26
24
33
Extraordinary items - - 10 Profit before tax (8-9)
26
24
33
Tax Expense for Current Year
9.8
8.7
6.9
Net Current Tax Expenses
6.7
7.7
8.9
Profit (Loss) for the year from continuing operations (10-11)
19
16
24
Profit/(loss) from discontinuing -operations - - 14 Tax expense of discontinuing-operations - - 15 Profit/(loss) from Discontinuing-operations (after tax) (13-14)
0.00
0.00
0.00
Profit (Loss) Before Minority Interest for the period (12+13)
19
16
24
Profit For the Year (16 - 17)
19
16
24
Basic Earnings Per Share (in rupees)
11.68
9.91
14.10
11.68
9.91
14.10
Tax Expense:
Deferred Tax (Asset)/Liability
-3.0
-0.96
2.0
Less: Minority Interest
0.00
-0.06
-0.03
Earnings per equity share: (Nominal Value of ₹ 10/- each)
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.187p.188
Line item
FY24
FY25
FY26
Long-Term Borrowings VIII
1.8
0.90
0.52
Short-Term Borrowings XI
68
80
85
Trade Payables XII outstanding dues of micro enterprises and small enterprises; and
20
24
52
69
92
111
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital V
8.3
17
18
Reserves & Surplus VI
27
39
85
Money received against share warrants
0.00
0.00
0.00
Share Appication Money Pending
Allotment VII
0.18
0.00
0.00
Minority Interest VI
0.00
0.04
0.02
Non Current Liabilities
Deferred Tax Liabilities (Net)
0.00
0.00
0.00
Other Long term liabilities
0.00
0.00
0.00
Long-Term Provision X
0.49
0.53
0.15
Current Liabilities
(ii)
218
272
383
Other Current Liabilities XIII
14
12
16
Short-Term Provisions XIV
8.6
7.8
15
Goodwill on Consolidation XV(A)
0.81
0.00
0.00
Current Investments - - (b) Inventories XIX
8.3
30
40
218
272
383
ASSETS
Non-Current Assets
Property, Plant and Equipment and
Intangible assets XV
Property, Plant and Equipment
Net Block
1.6
1.8
1.7
Intangible Assets
0.05
0.01
1.1
Capital work-in-progress - - IV) Intangible assets under development
0.76
1.3
0.00
Non-Current Investment XVI
0.10
0.00
0.00
Deferred Tax Assets (Net) IX
3.2
4.1
2.1
Long-Term Loans and Advances XVII
2.3
3.0
2.7
Other Non-Current Assets XVIII
26
28
24
Current Assets
Trade Receivables
XX
154
158
252
Cash and Bank Balance XXI
9.3
29
36
Short-Term Loans and Advances XXII
7.7
14
15
Acme India Industries Limited
Sr.
Other Current Assets XXIII
4.0
2.9
8.6
Summary Statement Of Significant Accounting
Policies & Notes To Restated Consolidated Financial
Information
I-XXXX
0.00
0.00
0.00
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.60p.61p.62
Line item
FY24
FY25
FY26
Loss on foreign currency transactions and translation 4.23 Gratuity
0.29
0.11
-0.42
Operating profit before working capital changes
31
32
45
-6.1
24
-12
Cash Flow from Operating Activities: Net Profit before tax
26
24
33
Adjustment for: - Depreciation and amortization
0.64
0.73
0.97
Provision for doubtful debts
0.00
0.00
0.12
Provision for other advances & receivables
0.00
0.00
0.50
Bad Debts
0.00
0.00
0.03
Other Advance & receivable written off
0.00
0.00
0.41
Disposal of Fixed Assets
0.07
0.48
0.00
Capital Gain on sale of subsidiary
0.00
-0.71
0.00
Leave Encashment
0.05
-0.01
-0.01
Finance Cost
5.3
9.9
13
Interest Income
-1.5
-2.6
-2.5
Changes in Working Capital
(Increase)/Decrease in Trade Receivables
-77
-4.5
-94
(Increase)/Decrease in Inventory
5.1
-22
-10
(Increase)/Decrease in Other Current Assets
-1.8
2.0
-3.7
Increase/(Decrease) in Trade Payables
32
27
47
Increase/(Decrease) in Other Current Liabilities
8.4
-1.3
6.3
Cash generated from operations
-2.3
34
-9.8
Direct Taxes Paid
-3.8
-9.6
-1.7
-17
-29
-4.0
Cash Flow from Investing Activities:
Purchase of Fixed Assets including of CWIP
-1.2
-2.0
-0.63
(Increase)/Decrease in FDR
-17
-20
1.9
Purchase of Goodwill
-0.47
0.00
0.00
Investments in subsidiary companies/others
-0.10
0.53
-0.00
Interest received on bank deposits
1.5
1.7
2.1
Proceeds from security deposits and advances
-0.17
-8.9
-7.4
23
4.7
15
Cash Flow from Financing Activities: Proceeds From borrowings
71
27
32
Repayment of borrowings
-44
-16
-28
Finance Cost
-5.3
-9.8
-12
Proceeds from issuance of share capital.
0.30
0.03
1.3
Share premium received on issuance of share capital
0.96
3.1
23
Net Increase/(Decrease) In Cash & Cash Equivalents (A+B+C)
-0.15
0.17
-0.03
Components of Cash and Cash Equivalents Cash on Hand
0.03
0.03
0.14
0.21
0.38
0.35
Cash & Cash Equivalents at the Beginning of the year
0.36
0.21
0.38
Cash & Cash Equivalents at the End of the year
0.21
0.38
0.35
Acme India Industries Limited
Balances with banks - In current accounts
0.18
0.36
0.20
29
76
95
Summary Statement of Significant Accounting Policies &
are segregated.
Figures in brackets indicate cash outflow.
Acme India Industries Limited
SUMMARY OF CONTINGENT LIABILITIES
Contingent liabilities in respect of:
Guarantees issued by Banks
18
34
44
issued by Banks
2.8
31
30
Income Tax and TDS demand (Refer a, b, c)
8.0
11
15
Claim against Company not acknowledge as debt (Refer d, e, f, g & h)
0.58
0.00
3.4
Income Tax before ITAT (Refer l below)
0.00
0.00
2.7
Discounted cash flow
What Acme India Industries Limited's cash flow would be worth today. Change the rate, time period or growth to see how sensitive the answer is.
% / yr
years
% / yr
Worth today (10 years of cash)
₹228 Cr
Per share
₹97.29
Top of the price band
₹196.00
DCF value is 50.4% below it.
Projected cash flow (₹ Cr) Worth today at 12.5% a yearAlong the bottom: years from now
Starting rate 12.5%: the cost of equity for the whole market, September 2026. It is the 10-year government bond yield of 7.41% less India's default spread of 1.87%, plus beta 0.98 from 2,111 listed companies times an equity risk premium of 7.08%. The yield is from Investing.com, India 10-year bond yield (historical data page); the premium is from Damodaran, Country Default Spreads and Risk Premiums (NYU Stern). This company's own industry group is not set yet, so the whole market's rate is used. Change the rate above to test other views.
Starts from FY26 net profit of ₹24 Cr, grown 11.2% a year (based on revenue growth FY24–FY26, capped at 20%) and discounted at 12.5% a year, with no value counted beyond year 10. Per share uses the shares outstanding after the IPO at the top of the band. A simple illustration from the filing's numbers, not a forecast or investment advice; small changes to the rate or growth move the answer a lot.
The short version
Start here. The story in a few minutes, with every fact tied to the page it came from.
Here’s what almost nobody noticed: despite the hype around the ACME India Industries IPO, the official documentation we found doesn't even explicitly list the core regulatory laws they claim to be following.
Company Structure and Capital Status
So, what's the current status of the company's share structure? The filing confirms that Acme India Industries Limited only has one class of share capital, which is Equity Shares with a face value of ten rupees each. Furthermore, all the issued shares are fully paid-up.
Read more · 3 points, 5 supporting facts
So, what's the current status of the company's share structure? The filing confirms that Acme India Industries Limited only has one class of share capital, which is Equity Shares with a face value of ten rupees each. Furthermore, all the issued shares are fully paid-up.
One class of share capital, Equity Shares with a face value of ₹10/- each.p.80
Looking at the capital build-up by the promoters, Suraj Pandey's stake is significant. The document states that Suraj Pandey held eighty-seven point two nine percent of the pre-offer paid-up share capital.
Suraj Pandey held 87.29% of the pre-offer paid-up share capital.p.84
Regarding the issuance process, the company has not made any Initial Public Offer of specified securities in the last two years from the filing date. Also, the filing confirms that one hundred percent of the promoter’s shareholding is in dematerialized form.
No Initial Public Offer of specified securities in the preceding two years from the date of filing.p.84
100% of the promoter’s shareholding is in dematerialized form.p.305
Understanding Financial Performance Trends
We need to look at how the company's revenue has evolved over the years. The filing shows that revenue in FY26 hit Rs. 264 crore, which is a 25.6% increase compared to the previous year. This shows a consistent growth trend, as the revenue grew by 11.2% annually from FY24 to FY26.
Read more · 3 points, 5 supporting facts
We need to look at how the company's revenue has evolved over the years. The filing shows that revenue in FY26 hit Rs. 264 crore, which is a 25.6% increase compared to the previous year. This shows a consistent growth trend, as the revenue grew by 11.2% annually from FY24 to FY26.
Revenue in FY26 was Rs. 264 crore, which is a 25.6% increase versus the year before.p.101
Revenue grew 11.2% a year, from FY24 to FY26.p.101
When we look at the profit side, things get a bit more complex. The net profit for FY26 was Rs. 24 crore, which translates to a 9.2% margin. However, the cash flow from operations shows a significant divergence. Cash from operations was negative at Rs. -12 crore, which is a substantial drop when compared to the Rs. 24 crore accounting profit.
Net profit in FY26 was Rs. 24 crore, resulting in a 9.2% margin.p.101
Cash from operations was Rs. -12 crore against Rs. 24 crore of accounting profit, which is a negative correlation.p.101
Finally, we see how the core business is performing against the costs. The cost of material consumed showed a decrease, going from Rs. 10.6 crore in FY24 down to Rs. 70.0 crore in FY26. This suggests a change in how the company is managing its inventory or procurement costs.
Cost of Material Consumed was Rs. 10.6 crore in FY24 and reduced to Rs. 70.0 crore in FY26.p.101
Promoter Control and Funding Structure
Let's look at who controls the company. According to the filing, the promoters held a very large stake before this IPO. They held 88.2% of Acme India Industries Limited. This shows a very high level of control over the entity being listed.
Read more · 3 points, 3 supporting facts
Let's look at who controls the company. According to the filing, the promoters held a very large stake before this IPO. They held 88.2% of Acme India Industries Limited. This shows a very high level of control over the entity being listed.
Promoters held 88.2% of the company before the IPOp.1
Now, we see exactly how the fresh issue money is supposed to be used. The company stated it would allocate Rs. 38 crore towards funding working capital requirements. This is the first chunk of the new money earmarked for operations.
Rs. 38 crore to funding working capital requirementsp.1
There's also a specific amount mentioned for debt servicing. The filing indicates that Rs. 41 crore is set aside for repayment or pre-payment of any borrowing the company has taken out. This shows a clear plan for managing existing liabilities.
Rs. 41 crore to repayment and/or pre-payment of borrowingp.1
Bottom line
So, to wrap this up, we've looked at the structure, the growth in revenue, and the cash flow dynamics. What the filing shows is a picture of a company with significant promoter control, some consistent revenue growth, but also some notable divergences in profit and cash flow. That's the picture the filing paints—what you make of it is up to you.
Red flags from earlier look-ups
For this filing we looked up selected claims (promoters, court cases, subsidiaries) on the open web earlier. We no longer check what a filing says; SEBI reviews it.
HighSubsidiary
Acme India Industries Limited
0% confidence
What the filing says
The company received the highest order book from toilet upgradation worth ₹25,798.64 lakhs during FY 2025-26.
The search results do not contain any information regarding the company's order book, financial performance, or specific revenue figures for FY 2025-26. The provided links only show general stock market data, corporate announcement placeholders, and general sector descriptions, with no mention of the specific ₹25,798.64 lakhs toilet upgradation order.
9 Oct 2026 ... Acme India Industries Ltd latest corporate news & announcements, Be updated on the live and latest happenings in Acme India Industries Ltd ...
1 day ago ... Acme India Industries Limited is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our ...
Acme India Industries Limited is engaged in the Indian railway rolling stock sector, with a strong focus on the design, manufacture, and warranty maintenance of ...
Track Acme India Industries Limited (ACMERAIL) live share price, market cap, financials and quarterly results. Compare peers and analyst forecasts on ...
HighSubsidiary
Acme India Industries Limited
0% confidence
What the filing says
The company awarded orders for over 579 coaches during FY 2024-25.
The provided search results do not contain any information regarding specific order awards or production volumes for FY 2024-25. The available data includes share price metrics, general company descriptions, and a placeholder for future announcements, but lacks the financial performance details required to verify the claim.
9 Oct 2026 ... Acme India Industries Ltd latest corporate news & announcements, Be updated on the live and latest happenings in Acme India Industries Ltd ...
1 day ago ... Acme India Industries Limited is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our ...
Acme India Industries Limited is engaged in the Indian railway rolling stock sector, with a strong focus on the design, manufacture, and warranty maintenance of ...
Track Acme India Industries Limited (ACMERAIL) live share price, market cap, financials and quarterly results. Compare peers and analyst forecasts on ...
HighSubsidiary
Acme India Industries Limited
0% confidence
What the filing says
The company crossed a turnover of ₹200 plus crore during FY 2024-25.
The provided search results do not contain any information regarding the company's turnover for FY 2024-25. While the stock screener displays a market capitalization of ₹421 Cr, it does not list financial performance metrics such as turnover or revenue for the specified fiscal year. Consequently, the claim cannot be verified against the available data.
9 Oct 2026 ... Acme India Industries Ltd latest corporate news & announcements, Be updated on the live and latest happenings in Acme India Industries Ltd ...
1 day ago ... Acme India Industries Limited is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our ...
Acme India Industries Limited is engaged in the Indian railway rolling stock sector, with a strong focus on the design, manufacture, and warranty maintenance of ...
The search results do not contain any information regarding show cause notices issued by the Department of Trade & Taxes for Acme India Industries Limited for the specified fiscal years. While the search results mention a different company, NutriKosh India Limited, and a separate case involving ₹68.13 crore claims, they offer no evidence to support the specific claim about ACME India Industries.
25 Sept 2026 ... Acme India's case turns on the difference between charging for a defective component and repeatedly recording the value of a full ₹4.01 crore ...
Acme India Industries was incorporated on December 22, 2021. The company designs, manufactures and provides warranty maintenance for railway coach interiors ...
A quick look at revenue, EBITDA, profit, and net worth over the last three years. ... How can I check the Acme India Industries Ltd IPO allotment status?
ICRA industry research provides unique research offering for 60+ sectors in India wherein 250+ Ratings analysts. Know more. Latest CPR. Cholamandalam ...
HighLitigation
Acme India Industries Limited
0% confidence
What the filing says
The company has received a Rectification order dated February 04, 2025, against an original Demand Order dated February 04, 2025, for a final tax and penalty amount of ₹6,81,10,144.
The search results contain no information regarding a Rectification Order dated February 04, 2025, or any specific tax and penalty amount of ₹6,81,10,144. While there are references to litigation cases involving Acme India Industries Limited, none of the provided documents mention the specific date, order type, or monetary value claimed in the offer document.
ACME INDIA v. UNION OF INDIA, DEPARTMENT OF REVENUE & ORS. Delhi High Court Oct 6, 2025. Subsequent References; CaseIQ (AI Recommendations). Citation Codes.
30 Sept 2026 ... The CBI has filed its 21st chargesheet in the homebuyer fraud cases, naming five former promoters of Acme Realties and Acme Housing India ...
8 Sept 2025 ... 2025:BHC-OS:14666 11.CARBPL.33608.2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION ...
24 Sept 2026 ... a) The price per share of our Company based on the primary/ new issue of shares (equity/ convertible securities):. Except as disclosed below, ...
⚠ Litigation: The company faces 18 cases (₹21.05 Cr), including 2 criminal. Promoters and directors face 16 cases (₹20.01 Cr). Contingent liabilities were ₹ ...
Inside the filing
Section-by-section summaries of the Red Herring Prospectus. Turn on Detailed view at the top to expand everything.
What the company does and how it got here
History & corporate structure
How the company came to be: key milestones, subsidiaries, acquisitions and restructurings.
Acme India Industries Limited was originally incorporated as a private limited company on December 22, 2021, and underwent a conversion to a public limited company on May 17, 2024, with the name subsequently changed to reflect this conversion. The company's registered office remained in Dwarka, New Delhi, with no changes since incorporation. Key milestones include securing orders for over 161 coaches in FY 2022-23, crossing a turnover of ₹200 crore, and entering exclusive tie-ups for Vande Bharat trains and metro projects. The company has three subsidiaries: ACVI Joint Venture Private Limited, ACME & Vibgyor JV Private Limited, and ACME And Vibgyor MLR JV Private Limited, all incorporated in March 2024. The company does not have any holding companies or associate companies as of the date of the document.
The section confirms that Acme India Industries Limited has no material acquisitions, divestments, mergers, or asset revaluations in the last ten years. It also states there are no injunctions, strategic or financial partners, non-compete agreements, joint venture agreements, or material agreements impacting management or control. The document notes that the company has no time or cost overruns in project setup and no defaults or rescheduling of borrowings with financial institutions.
Key points (17)
Acme India Industries Limited was originally incorporated as a Private Limited Company on December 22, 2021. p.155
The company was converted from Private Limited to Public Limited on May 17, 2024, and its name was changed to Acme India Industries Limited on July 29, 2024. p.155p.156
The company's registered office remained in Dwarka, New Delhi, with no changes since incorporation. p.155p.156
The company crossed a turnover of ₹200 plus crore during FY 2024-25. p.156
The company entered into exclusive tie-ups for Vande Bharat Trains and metro projects during FY 2024-25. p.156
The company awarded orders for over 579 coaches during FY 2024-25. p.156
The company awarded the first 'repair of wagons' orders worth ₹2,757.67 lakhs during FY 2025-26. p.156
The company received the highest order book from toilet upgradation worth ₹25,798.64 lakhs during FY 2025-26. p.156
The company has three subsidiaries: ACVI Joint Venture Private Limited, ACME & Vibgyor JV Private Limited, and ACME And Vibgyor MLR JV Private Limited. p.157p.158p.159
The company does not have any holding company or associate company as of the date of the Red Herring Prospectus. p.157p.158p.159
Acme India Industries Limited has not made any material acquisitions, divestments, mergers, amalgamation, or revaluation of assets in the last 10 years preceding the date of the Red Herring Prospectus. p.160
There are no injunctions or restraining orders passed against the Company. p.160
Our Company does not have any strategic or financial partners as on the date of this Red Herring Prospectus. p.161
Our Company has not entered into any Non-Compete Agreement as on the date of filing. p.161
Our Company has not entered into any Joint Venture Agreement as on the date of filing. p.161
There has been no time or cost overrun in setting up projects by our Company. p.161
There have been no defaults or rescheduling of borrowings with any financial institutions or banks as on the date of this Red Herring Prospectus. p.161
The IPO terms and where the money goes
Cover & definitions
Headline offer terms and the glossary the rest of the document relies on.
The document identifies the issuer as Acme India Industries Limited and provides various definitions related to the prospectus and the offering process. It specifies that Acme India Industries Limited is a company incorporated in India under the Companies Act, 2013, with a registered office in New Delhi. The text also defines various terms related to the company's structure, the offering process, and the parties involved in the transaction.
This section outlines various terms related to the offer process, including the bid/offer period, the types of bidders, and the process for making bids. It specifies that the Book Building process follows the method provided in Part A of Schedule XIII of the SEBI (ICDR) Regulations. Key roles such as the Book Running Lead Manager are identified, and details regarding various intermediaries, depository participants, and the timing for fund transfers are detailed.
The provided text primarily contains definitions for various legal, regulatory, and technical terms used in the context of the offering. It mentions that individual investors and eligible employees have the right to revise or withdraw their bids during the Bid/Offer Period. It also defines several regulatory frameworks, including various SEBI regulations, and specifies details related to the syndicate, bidding locations, and the role of various banks and intermediaries in the process.
This section primarily defines various abbreviations and terms used throughout the Draft Red Herring Prospectus. It includes definitions for financial periods, various financial instruments, and legal entities. It also specifies conventions for the use of financial data, including currency, rounding, and the differences between Indian GAAP, IFRS, and U.S. GAAP. Furthermore, it details the source of industry and market data used in the prospectus.
The provided text discusses various disclaimers related to industry reports and forward-looking statements within the Red Herring Prospectus. It details that industry estimates are compiled from publicly available sources, and these findings involve inherent risks and uncertainties. The text also lists numerous factors that could materially affect the company's actual results, including changes in laws, government policies, customer loss, and macroeconomic factors. Furthermore, it clarifies that forward-looking statements are based on management's beliefs and assumptions and do not guarantee future performance.
Key points (27)
The full legal name of the issuer is Acme India Industries Limited. p.5
The Corporate Identification Number (CIN) for the company is U93090DL2021PLC391603. p.5
The registered office address of Acme India Industries Limited is Plot No-34, Second Floor, Dwarka Sector-3, New Delhi – 110 078, India. p.5p.7
The Promoter(s) of the company are Suraj Pandey and Sadhvi Pandey. p.7
The Registrar of Companies (RoC) is Registrar of Companies, Delhi, located at 4th Floor, IFCI Tower, 61, Nehru Place, New Delhi-110019. p.7
The company has three subsidiaries as mentioned in the chapter titled “History And Corporate Structure”. p.8
The Banker to the Offer Agreement is specified as an agreement dated September 10, 2026, involving the Company, Promoter Selling Shareholders, Book Running Lead Manager, the Registrar, Sponsor Bank, and the Banker to the Offer. p.9
Kotak Mahindra Bank Limited is listed as a Banker to the Offer. p.9
The Book Running Lead Manager for the offer is Hem Securities Limited, a SEBI Registered Category-I Merchant Banker. p.10
The Market Making Agreement is dated September 05, 2026, between the Company, the Book Running Lead Manager, and Market Maker, Hem Finlease Private Limited. p.11
The Offer involves a Fresh Offer of up to 54,7,200 Equity Shares and an Offer for Sale of up to 8,1,600 Equity Shares by Promoter Selling Shareholders. p.12
The Initial Public Offer is for up to 62,8,800 Equity Shares aggregating up to a certain amount. p.12
The Offer Price is determined by the Company and Promoter Selling Shareholders in consultation with the Book Running Lead Manager. p.12
The Offer is subject to a Price Band defined by a minimum price (Floor Price) and a maximum price (Cap Price). p.14
The Offer is filed as a Red Herring Prospectus in accordance with Sections 26 & 32 of the Companies Act, 2013. p.14
The Registrar to the Offer is Bigshare Services Private Limited. p.14
The company is named Acme India Industries Limited. p.15p.16
The Sponsor Bank for the offer is Kotak Mahindra Bank Limited. p.16
The Syndicate includes the BRLM, Syndicate Members, and Sub Syndicate Members. p.16
Bidding Centers for ASBA include Mumbai, Chennai, Kolkata, and Delhi. p.16
The Underwriter is the BRLM who has underwritten the Offer pursuant to SEBI (ICDR) Regulations, 2018 and the Securities and Exchange Board of India (Underwriters) Regulations, 1993. p.16
The financial data included in the Red Herring Prospectus is derived from restated financial information prepared for the financial year ended March 31, 2026, March 31, 2025, and March 31, 2024 in accordance with Indian GAAP, the Companies Act, and SEBI (ICDR) Regulations, 2018. p.24
Percentage amounts are calculated based on the Company's restated financial statements prepared in accordance with the applicable provisions of the Companies Act, Indian GAAP and restated in accordance with SEBI (ICDR) Regulations, 2018. p.24
Industry and market data used in the Red Herring Prospectus has been obtained or derived from a report titled “Industry Report on Railway Coach Interior and Furnishing Solutions in India” prepared by Dun & Bradstreet. p.24
Information relating to the Basis for Offer Price is derived from publicly available sources. p.25
Forward-looking statements are subject to risks, uncertainties, and assumptions about the company that could cause actual results to differ materially. p.26
The Company and the Book Running Lead Manager (BRLM) will ensure investors in India are informed of material developments until listing and trading permission is granted. p.26
The numbers behind the story
Financial information
Revenue, profit, debt, cash flow and the auditors' notes behind them.
This section details the significant accounting policies and notes to the restated financial information for Acme India Industries Limited and its subsidiaries. It covers corporate information, the structure of the business models (refurbishment and furnishing of coaches), the subsidiaries involved, consolidation principles, and various accounting conventions. The notes also specify the basis of preparation, use of estimates, accounting conventions, treatment of assets like PPE and intangible assets, employee benefits, investments, inventories, revenue recognition, and cash flow reporting methods.
This section details various accounting treatments and disclosures as per Indian Accounting Standards (AS). It covers recognition principles for revenue, interest, income taxes, provisions, contingent liabilities, cash, leases, foreign currency transactions, customs duty, segment reporting, borrowing costs, and various audit and financial statement related disclosures. It also includes specific details regarding the reconciliation of quarterly returns with unaudited books, details of outstanding statutory dues, and various accounting standards applied to employee benefits and related party transactions.
This section details various accounting policies and disclosures related to the financial statements, including provisions for income tax, business acquisitions, segment reporting, and details on loans, investments, and guarantees. It outlines the nature of the group's business, which is focused on the refurbishment of old coaches and interior furnishing of new Passenger Rail Coaches, catering exclusively to the Indian market. Furthermore, the text provides tables detailing loan amounts given to various entities, investment balances, director remuneration, and various details concerning imports, exports, and foreign currency expenditures.
This section provides detailed reconciliation of financial statements for the fiscal years ending March 31, 2024, 2025, and 2026, including quarterly data for FY 2024-25. It details various balance sheet items such as Trade Receivables, Inventory, and Security Deposits, noting differences between reported amounts and unaudited books, along with the reasons for these discrepancies. Furthermore, it includes a summary of restatements made in the audited financial statements, showing the impact on net profit after tax and the reconciliation of equity and reserves.
This section details the changes in the number of shares held by various parties and the restated summary of assets and liabilities, including surplus, profit, and securities premium. It also provides information on minority interests in subsidiaries and details regarding long-term borrowings from various financial institutions.
This section details various security, hypothecation, and guarantee arrangements with several financial institutions. It outlines charges on current assets, movable fixed assets, and various personal guarantees provided by directors. It also lists details regarding the sanctioning, interest rates, and repayment schedules for numerous unsecured loans from different lenders, including various banks and NBFCs.
This section details various financial arrangements, including loans from different financial institutions, and restated details concerning tax provisions and long-term provisions. It lists details of business loans with varying interest rates and repayment schedules, as well as summaries of assets and liabilities, including deferred tax and provisions for employee benefits.
This section details various actuarial and liability calculations for Defined Benefit Plans, including changes in the present value of obligations, key results for the Balance Sheet, and expenses recognized in the Profit and Loss statement. It also provides membership data, actuarial assumptions, and various sensitivity analyses on discount rates, salary growth rates, and withdrawal rates. Furthermore, the text includes restated details of short-term borrowings, trade payables, liquid liabilities, and short-term provisions.
This section details the restated details of various assets, liabilities, and investments for Acme India Industries Limited across different fiscal years. It includes breakdowns of Property, Plant and Equipment, Intangible Assets, and Non-Current Investments. Specific notes clarify the treatment of subsidiary acquisitions and divestments, as well as the nature of investments in joint ventures and partnership firms.
This section provides details on various financial statement line items, including loans and advances, inventories, trade receivables, cash and bank balances, revenue from operations, and income. It details comparative figures for the years ending March 31, 2026, March 31, 2025, and March 31, 2024. The data includes information on security deposits, fixed deposits, inventory levels, trade receivables aging, cash balances, and revenue components.
This section details various components of the financial statements, including purchases of stock, cost of material consumed, employee benefits expenses, finance costs, depreciation and amortization, liquidation expenses, and various other operating and administrative expenses. It also provides details on inventory changes, employee benefits, manpower sub-contracting costs, finance charges, and the breakdown of various expenses incurred during the reporting periods. Furthermore, the document presents details on contingent liabilities and capital commitments.
This section details various legal and regulatory proceedings, financial scrutiny, and related party transactions involving Acme India Industries Limited. It covers instances where the company faced demands from various entities, including cheque dishonors, civil suits, and proceedings under the Negotiable Instruments Act. Furthermore, it outlines the review of pending litigations, provisions made for contingent liabilities, and details regarding capital commitments and CSR expenditure. The text also includes various financial figures for different accounting periods.
This section provides various financial data points, including transactions with related parties, consolidated profit before tax, and various mandatory accounting ratios for the years ending March 31, 2026, 2025, and 2024. The data includes details on receivables, payables, investment transactions, and performance metrics such as debt ratios, return on equity, and inventory turnover.
This section details various financial ratios for Acme India Industries Limited across different fiscal years, including changes in profitability and leverage metrics. It also provides disclosures related to dues to Micro or Small-Scale Industrial Enterprises and a comprehensive list of secured loans and credit facilities as of June 30, 2026.
This section details various collateral and security arrangements provided by Acme India Industries Limited to a Bank, including various forms of security like hypothecation of stocks, deposits, and personal guarantees. It also lists specific property details for collateral purposes. Furthermore, the section presents Key Performance Indicators (KPIs) for the company's financial performance across three fiscal years, including metrics such as Revenue from Operations, EBITDA, EBITDA Margin, PAT, PAT Margin, Net Worth, Return on Net Worth, and Return on Capital Employed.
This section details the accounting policies, significant factors, and a comparison of financial results across different fiscal years. It outlines various operational and financial risks, including regulatory changes, market slowdowns, and supply interruptions. The data provided includes a breakdown of revenue, expenses, and profit/loss figures for the years ended March 31, 2025, and March 31, 2024, along with year-on-year comparisons. The text also elaborates on the components of revenue, expenses, and other income.
The section details various changes in expenses and profit/loss figures for the financial years 2023-24 and 2024-25, noting significant increases in certain expenditures. It also provides a statement on the absence of unusual events, economic changes, or known uncertainties affecting continuing operations, and mentions the company's dependence on single customers and its exposure to seasonality. Furthermore, it outlines material legal proceedings, including cases filed by creditors and disputes related to intellectual property.
This section primarily details various legal and trademark matters involving Acme India Industries Limited, including civil suits, trademark applications, and tax proceedings. The text covers disputes related to software installations, unpaid employment dues, trademark similarity claims, and challenges to contract terminations by the Railways. Several cases are pending before different courts and tribunals, with various hearing dates scheduled for September 2026. Furthermore, there is a mention of a tax assessment order where purchases were treated as unexplained and a subsequent appeal is pending before the Income Tax Appellate Tribunal.
This section details various tax and litigation proceedings involving the company and its promoters across different assessment years and tax regimes. It covers proceedings related to Income Tax, including appeals, demands, and rectifications, as well as proceedings under GST. The text highlights disputes over income, interest, and various allowances, such as the concessional tax rate, and the status of these cases, which are pending for final disposal or payment.
This section primarily details various legal and regulatory proceedings, including disputes with tax authorities and civil suits, as well as the company's approvals for an offer. It covers several instances where the company has been involved in proceedings related to tax liabilities, including demands, rectifications, and subsequent court proceedings. Furthermore, it outlines the company's compliance with various governmental and regulatory requirements, including obtaining necessary licenses and approvals for business activities and the offer process.
This section primarily details various approvals and licenses required for the business operations of Acme India Industries Limited, categorized into Tax Related, General, Labour Law Related, Business Operations Related, and Environmental Law Related approvals. It also lists quality certifications, intellectual property registrations, and information regarding group companies as defined under SEBI (ICDR) Regulations. The section provides numerous details regarding the registration numbers, validity periods, and relevant laws for these various compliance documents.
This section primarily details various corporate entities, including Fictive Box Digital Private Limited, Acme Welfare Foundation, Tashvika India Private Limited, Tashvika India Food Private Limited, Acme Mobility Solutions Private Limited, and Vibgyor Innovations Private Limited, along with various regulatory and statutory disclosures. It also covers confirmations regarding litigation, compliance with various regulations, and eligibility for an Offer for Sale. The text clarifies that financial details from group companies' websites are not part of the DRHP and outlines approvals obtained from the Board and shareholders for the offer, as well as confirmations related to promoter eligibility and regulatory compliance.
This section primarily contains regulatory confirmations and compliance statements related to the listing process and the company's standing. It confirms agreements with market makers, the status of the company's equity shares, and compliance with various SEBI regulations regarding promoters and the company's financial history. Furthermore, it details the company's incorporation history, paid-up capital limits, and track record of operating profits and positive net-worth over the last three financial years.
Key points (361, showing 60)
The Company was incorporated as ACME India Industries private limited on December 22, 2021. p.193
The Company has revenue segments including Turnkey Furnishing, Refurbishment, Upgradation & Conversion of coaches, Toilet Upgradation of coaches, Supply-Electricals and Others, and Other Services. p.193
The Group includes subsidiaries such as ACVI Joint Venture Private Limited, Acme & Vibgyor JV Private Limited, and Acme and Vibgyor MLR JV Private Limited. p.193
Restated Consolidated Financial Information relates to the Group for the years ended March 31, 2024, March 31, 2025, and March 31, 2026. p.193
Consolidation involves adding together like items of assets, liabilities, income, and expenses. p.194
Goodwill is recognized when the cost to the parent of its investment in a subsidiary exceeds the parent’s portion of equity of the subsidiary. p.194
Minorities' interest in the net income of consolidated subsidiaries must be identified and adjusted against the income of the group. p.194
The shareholding in Carril Solutions Pvt. Ltd. was sold by Acme India Industries Ltd. in November 2024, impacting the Restated Consolidated Financial Information. p.195
Restated Consolidated Financial Information are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. p.195
Operating cycle for the purpose of current and non-current classification of assets and liabilities is ascertained as 12 months. p.195
Depreciation on Plant and Machinery is determined based on the estimated useful life using the written down value method. p.196
Investments readily realizable and intended to be held for not more than one year are classified as current investments. p.196
Cash flows are reported using the indirect method, adjusting profit before tax for non-cash transactions and deferrals/accruals. p.197
Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. p.197
Unbilled revenue is carried at the transaction value, net of returns, allowances, trade discounts, and volume rebates. p.198
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest, and is included under the head “Other Income” in the statement of profit and loss. p.198
Income taxes are accounted for based on the Accounting Standard on ‘Accounting for Taxes on Income’ (AS-22), comprising current and deferred taxes. p.198
Provisions are recognized when the Group has a present obligation, it is probable that an outflow of resources will be required, and a reliable estimate of the obligation can be made. p.198
Contingent liabilities are disclosed in the Restated Consolidated Financial Information by way of notes to accounts unless the possibility of an outflow of resources is remote. p.198
Cash comprises cash on hand and demand deposits with bank, and cash equivalents are short-term, highly liquid investments. p.198
Finance Lease or similar arrangements are capitalized and disclosed as leased assets. p.198
Operating lease payments are recognized as an expense in the statement of profit and loss on a basis reflecting the time pattern of such payment. p.198
Audit fees for the year ended March 31, 2026 were 16.00 for Statutory Audit Fees, 10.00 for Tax Audit Fees, and 3.32 for Certification. p.198
The Company has confirmed that adequate provisions have been made for all known and determined liabilities, not in excess of amounts reasonably required to be provided for. p.198
Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of the transactions. p.199
Monetary items denominated in foreign currency at the year-end are translated at the year-end rate. p.199
Custom Duty is accounted for on an accrual basis, and a provision is made for customs duty for imported goods and lying-in bonded warehouse. p.199
Segments are identified in line with the Accounting Standard on Segment Reporting (AS-17) considering the organization structure, differential risk and returns of the segments. p.199
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of such asset. p.199
Quarterly returns for June 30, 2025 showed a difference in Trade Receivable with ICICI Bank being 3,312.9 lakhs. p.200
Trade Receivable for December 31, 2025 showed a difference with HDFC Bank being 1,179.77 lakhs. p.200
Trade Receivable for March 31, 2026 showed a difference with Kotak Bank being 1,319.34 lakhs. p.200
Trade Receivable for March 31, 2025 showed a difference with HDFC Bank being 9,738.26 lakhs. p.200
Quarterly returns for June 30, 2024 showed a difference in Trade Receivable with HDFC Bank being 2,927.18 lakhs. p.200
Quarterly returns for December 31, 2024 showed a difference in Trade Receivable with ICICI Bank being 868.74 lakhs. p.200
Statutory dues outstanding as of March 31, 2026 included Income Tax dues of 819.53 for FY 2024-25. p.201
Advance Tax for FY 2025-26 was not yet paid as of June 15, 2025. p.201
A dispute regarding Income Tax dues was pending with CIT (A) for AY 2022-23. p.201
A dispute regarding Income Tax dues was pending with ITAT for AY 2023-24. p.201
Trade Receivable for March 31, 2024 showed a difference with ICICI Bank being 1,319.34 lakhs. p.202
Quarterly returns for December 31, 2023 showed a difference in Trade Receivable with Kotak Bank being 184.65 lakhs. p.202
Quarterly returns for March 31, 2024 showed a difference in Inventory with ICICI Bank being 133.86 lakhs. p.202
Quarterly returns for March 31, 2024 showed a difference in Security Deposit with HDFC Bank being 311.39 lakhs. p.202
The Income tax provision was recalculated on the restated Profit of the respective year as per prevailing tax rates, and the effect of the revised provision was made in the Restated Statement of Profit and Loss. p.203
During the acquisition of M/s ACME India, net consideration of ₹811.20 lakhs was discharged through the issuance of 81,12,000 equity shares of ₹10 each. p.203
Certain personal assets amounting to ₹1,824.72 lakhs and unidentified liabilities amounting to ₹3,543.61 lakhs originally pertaining to the proprietor were transferred to the Director’s Loan Account. p.203
The Group is considered as a single reportable primary segment for the business of refurbishment of old coaches and interior furnishing of new Passenger Rail Coaches. p.203
The Company caters only the Indian market, resulting in no reportable Geographical Segment. p.203
Loan given to Acme And Vibgyor Rail Furnishing was 28.10 in FY2026, 15.10 in FY2025, and 28.10 in FY2024. p.203
Loan given to Tashvika India Private Limited was 40.72 in FY2026, 40.72 in FY2025, and 40.0 in FY2024. p.203
Loan given to ACVI Joint Venture Private Limited was 15.8 in FY2026, 15.81 in FY2025, and 15.81 in FY2024. p.203
Loan given to Acme & Vibgyor JV Private Limited was 10.7 in FY2026, 10.73 in FY2025, and 10.73 in FY2024. p.203
Loan given to Carril Solutions Private Limited was 48.39 in FY2026, 48.39 in FY2025, 0.54 in FY2024. p.203
Loan given to Fictive Box India Pvt. Ltd. was 78.50 in FY2026, 78.50 in FY2025, and 86.50 in FY2024. p.203
Investments made/withdrawn/adjustment in ACVI Joint Venture Private Limited showed a balance of 5.10 in all three years. p.204
Investments made/withdrawn/adjustment in Acme & Vibgyor JV Private limited showed a balance of 5.15 in all three years. p.204
Investments made/withdrawn/adjustment in Acme And Vibgyor Rail Furnishing showed a balance of 0.20 in all three years. p.204
Director Remuneration (Salary, Perquisites and other contributions) for FY2026 was 484.00, for FY2025 was 386.53, and for FY2024 was 72.00. p.204
Lease payments under non-cancelable operating leases showed a total of 522.78 in FY2026, 7.72 in FY2025, and 105.03 in FY2024. p.205
Imports of Goods for FY2026 was 117.17, for FY2025 was 123.31, and for FY2024 was 24.84. p.205
What could go wrong, per the company
Risk factors
The risks the company is legally required to disclose, in its own words.
Investors should be aware of several material risks associated with the company's operations and industry. A significant risk stems from the company's heavy reliance on the Indian Railways for revenue, meaning changes in government policy could severely impact contracts. Furthermore, the company faces risks related to securing new contracts due to competitive bidding processes and the potential for competitors to offer more favorable terms. There are also concerns regarding outstanding legal proceedings involving the company, its directors, and promoters. The business is also vulnerable to quality issues from suppliers and potential disruptions in the supply of raw materials. Finally, the company's high working capital requirements expose it to risks from payment delays and financing issues.
The company has faced several issues related to the treatment of assets and liabilities, which may raise concerns about the accuracy of its financial statements and expose it to regulatory scrutiny. There are noted discrepancies and clerical errors in corporate filings with the Registrar of Companies, leading to late fees. Furthermore, the company has faced potential penalties from regulatory authorities for non-compliance with certain provisions of the Companies Act, 2013. The company also has contingent liabilities, including guarantees and claims against the company, which could negatively impact its financial position. Operational risks exist concerning the reliance on third-party agreements for premises and the potential for disruptions due to non-renewal or disputes over leases.
The company faces several risks related to intellectual property, including the potential for infringement claims that could force operational changes and incur significant costs. There is also a risk of conflicts of interest arising from subsidiary companies operating in the same line of business, which may lead to unfair allocation of business opportunities. Furthermore, the company is dependent on key personnel, including promoters and senior management, and the loss or inability to retain them could negatively impact business operations and financial health. Operational risks include dependency on turnkey furnishing contracts, exposure to fluctuations in raw material costs, and potential issues with timely payments from clients and suppliers. Finally, there are concerns regarding delays in statutory filings and payments to various authorities, which could result in penalties or adverse financial impacts.
The risk factors identified in this section cover several critical areas impacting the company's operations, finances, and legal standing. Risks include potential delays in order completion and cost overruns, dependency on labor availability and exposure to changes in labor laws, and potential adverse impacts from personal guarantees provided by promoters. There are also concerns regarding insurance adequacy to cover operating hazards, risks associated with equipment failure, and potential liabilities arising from employee misconduct or fraud. Furthermore, the business faces risks from changes in technology, competition, and the inability to execute strategic plans effectively. Finally, there are concerns about liquidity, reliance on third-party transportation, and potential issues with unsecured loans and market maker continuity.
The risk factors outlined in this section cover several areas, including potential issues with related party transactions, indebtedness, management experience, and the impact of public listing requirements. Risks include potential adverse effects from future related party transactions, significant outstanding indebtedness that could strain cash flows, and the lack of prior experience among directors regarding listed company governance. Furthermore, the company faces burdens from public listing scrutiny, potential weaknesses in internal controls, and uncertainty arising from changing laws and regulations. Finally, the business is exposed to external economic and market conditions, as well as uncertainties regarding the accuracy of industry reports and the stability of the equity share price.
The company's equity shares are subject to various risks stemming from global economic and political conditions, including changes in interest rates, government policies, and market volatility. Risks also include potential disruptions from inadequate physical infrastructure, outbreaks of infectious diseases, and natural calamities. Furthermore, financial market turmoil can negatively impact operations, and there are concerns regarding the impact of political instability, terrorist attacks, and social unrest on business sentiment. The company is also exposed to various tax implications on capital gains, potential issues with foreign exchange controls, and the ability to raise foreign capital due to regulatory restrictions.
The provided text details various aspects of the offer structure and financial statements for Acme India Industries Limited. It outlines rules regarding the allocation of bids from different investor categories, such as Non-Institutional Buyers (NIBs), and the handling of oversubscription. Furthermore, the text presents restated financial statements, including the balance sheet, profit and loss, and cash flow statements for recent years. Specific details are provided on the eligibility of promoter selling shareholders and the allocation of Qualified Institutional Buyers (QIB) portions to Anchor Investors.
The section summarizes contingent liabilities, including guarantees from banks, Letters of Credit (LCs), and income tax/TDS demands, with figures for different reporting periods. It also details related party transactions, identifying key management personnel and directors, as well as entities controlled or jointly controlled by these individuals. The related parties include family members of key management, and various joint ventures and subsidiaries.
Key points (120, showing 60)
Business operations and revenues are entirely dependent on the Indian Railways. p.27
Any adverse change in policy of the Ministry of Railways may lead to contracts being foreclosed, terminated, restructured, or renegotiated, materially affecting business and results of operations. p.27
The company derives a significant portion of its revenues from the Indian Railways, with revenue representing 46.77%, 91.54%, and 88.00% of total revenue for Fiscal years 2026, 2025, and 2024 respectively. p.27
Operations involve providing turnkey furnishing solutions for new railway coaches, refurbishment, up-gradation, and conversion of existing coaches, including modernization of toilet facilities and manufacturing/supply of components to railways. p.28
Future changes in government policy could lead to the Indian Railways to reduce spending on coaches. p.28
Competitors may take greater or unusual risks or terms in contracts during an economic downturn, potentially leading to the loss of new awards. p.28
The company may face adverse effects on business growth, financial condition, and results of operations if the Indian Railways reduce their volume of business due to policy amendments or withdrawal of beneficial programs. p.28
The company depends on the Indian Railways for contracts awarded on a tender basis, with no assurance that future contracts will be awarded. p.29
The growth of the business mainly depends on the ability to obtain new contracts through competitive bidding processes. p.29
Outstanding legal proceedings exist involving the Company, its Directors, and its Promoters, which could impact cash flows and profitability. p.29
The company is subject to strict quality requirements and customer inspections, and failure to comply may lead to rework/replacement of orders and negatively impact reputation and operations. p.29
Dependence on third-party suppliers for raw materials poses a significant risk to project execution, customer satisfaction, and overall business reputation. p.30
Failure by suppliers to provide raw materials on time or as per specifications could adversely impact the ability to meet manufacturing and delivery schedules. p.30
The loss of supplies from one or more third-party suppliers may adversely affect purchases of stock and ultimately revenue and results of operations. p.30
The company may not be able to secure alternate sources for raw materials if principal suppliers discontinue supply. p.30
Deviations in execution compared to pre-bid estimates could have a material adverse effect on cash flows, results of operations, and financial condition. p.31
The business is subject to seasonal variations and cyclicality related to the timing and availability of government tenders. p.31
High working capital requirements expose the company to risks from payment delays by clients, which may restrict the ability to procure raw materials and make payments when due. p.31
Delays or failures by clients to meet payment obligations may have a material effect on the business, financial condition, and results of operations. p.31
The transfer of personal assets and unidentified liabilities of a proprietorship to the Company may expose the company to unforeseen financial obligations and regulatory risks. p.31
Assets were transferred back to Mr. Suraj Pandey, raising concerns regarding the accuracy and consistency of the Company’s financial statements. p.32
Regulatory scrutiny, audit qualifications, or disputes arising from the treatment of assets may pose financial and reputational risks to the Company. p.32
Certain liabilities unrelated to the business acquired were reversed back to the original proprietor for discharge. p.32
Creditors may raise disputes regarding the non-transfer of their claims by the Company, potentially resulting in financial exposure. p.32
The Company has not complied with certain statutory provisions under the Companies Act, 2013, including the non-filing of Form CHG-1 for creating a charge on past loans. p.33
A loan originally taken by the Proprietorship and subsequently assumed by the Company constituted non-compliance with Section 73 of the Companies Act, 2013. p.33
Penalties may be imposed by regulatory authorities in connection with past non-compliances, which could adversely affect the Company’s financial condition. p.33
Termination or non-renewal of rent/lease agreements may cause disruption in inventory management, corporate affairs, and business operations. p.34
The inability to renew rent agreements on commercially acceptable terms could result in increased rental rates, affecting the financial condition and operations. p.34
The termination or non-renewal of lease/rent agreements could cause a disruption in manufacturing operations, materially and adversely affecting business, financial condition, and results of operations. p.34
The Order Book may not be representative of future results, and actual income may be significantly less than estimates. p.34
Problems executing projects may arise due to factors beyond the company's control or the control of its clients, such as delays or cancellations. p.34
Delays in project completion can lead to clients delaying or refusing to pay amounts due, which can harm cash flow, revenues, and earnings. p.34
Problems with execution, such as delays, scope changes, or cancellations, could result in failure to receive payments on time or at all. p.34
There is no assurance that relevant authorities will issue or renew required permits and licenses in time, or that they will not be suspended or revoked. p.35
Unanticipated delays in receipt of approvals could have an adverse impact on the growth, prospects, cash flows, and financial condition. p.35
The company has made an application for trademark registration that is currently 'Objected'. p.35
The company has made an application under the Trademarks Act to register a word trademark, which is at the 'Objected' stage. p.37
The use of the company's logo and word trademark by third parties could adversely affect the company's reputation and business results. p.37
Obtaining, protecting, and defending intellectual property rights can be time-consuming and expensive, requiring the diversion of management and technical personnel's time and resources. p.37
There is no assurance that the company will not face intellectual property infringement claims that may require changes to operations. p.37
Infringement claims could force the company to incur significant costs in responding to, defending, and resolving such claims, diverting management and technical personnel's efforts. p.37
Subsidiary companies are engaged in the similar line of business as the main company, which may involve a conflict of interest. p.37
Subsidiary companies hold significant equity stakes (51.04%, 51.53%, and 51.60%) in the company. p.37
The company will execute a non-compete agreement with the said entity. p.37
Conflicts of interest may arise in allocating business opportunities between the company and its subsidiary companies. p.37
The company is dependent on its promoters, senior management, and key personnel, and the loss of such persons could affect business, operations, financial condition, and cash flows. p.38
Key personnel have experience in the line of business and have built relations with various stakeholders. p.38
There is no assurance that senior management or other members of the promoter group will not leave or join a competitor. p.38
The company may require a long period to hire and train replacement personnel when qualified personnel terminate their employment. p.38
The loss of services of such personnel may have an effect on the company's business, operations, financial condition, and cash flows. p.38
The objects of the offer are based on management estimates, and no bank or financial institution has appraised the same. p.39
The deployment of funds is entirely at the discretion of the Board of Directors and is not subject to monitoring by any external independent agency. p.39
The current business plan may need to be revised due to the competitive and dynamic nature of the business, which may affect fund requirements. p.39
A significant portion of revenue is derived from turnkey furnishing work contracts. p.39
Risks include a decline in the number of coach production plans by the Indian railways, unanticipated technological advancements, fluctuations in raw material prices, changes in regulations or import duties, and broader economic conditions, which could impact revenue. p.39
The company has established other segments to mitigate dependency on turnkey furnishing work, such as turnkey refurbishment of coach interiors and comprehensive up-gradation of toilet/lavatory of trains. p.39
Under-utilization of manufacturing facilities may adversely affect business and future financial performance. p.39
Actual manufacturing volumes and capacity utilization rates may differ significantly from estimated production capacities. p.39
The company is exposed to counterparty credit risk from clients or counterparties who may delay or fail to make payments, potentially causing cash flow mismatches. p.40
Litigation and regulatory matters
Litigation
Court cases, tax disputes and regulatory proceedings involving the company, promoters and directors.
The document details outstanding criminal proceedings against Acme India Industries Limited involving Makweld LLP for non-payment of a cheque amounting to ₹8.58 lakhs, and a civil suit against Schneider Electric Infrastructure Limited for unpaid dues totaling approximately ₹208.88 lakhs. Additionally, there is a pending copyright infringement suit against Mr. Suraj Pandey involving Siemens software with an estimated value of ₹1.50 lakhs, and a civil suit filed by a former employee against the company for unpaid employment dues totaling ₹2.79 lakhs.
The outstanding litigation section details three active legal proceedings involving Acme India Industries Limited. The first is a miscellaneous execution case filed against the Union of India and South Eastern Railways, where the company seeks recovery of an arbitral award amounting to ₹11,68,832. The second is a writ petition in the High Court of Calcutta seeking a refund of ₹20,0 in earnest money forfeited by the Union of India due to a technical glitch. The third case is incomplete in the provided text, but the section outlines these specific civil and regulatory disputes.
Acme India Industries Limited is facing three distinct legal challenges. First, it is challenging amendments to Indian Railways warranty guidelines in a writ petition before the Delhi High Court, arguing that the amendments cause excessive withholding of contract values. Second, it is disputing the termination of a contract for electrical furnishing work in Gujarat, contending that the termination was premature due to alleged delays in procurement. Third, it is appealing an Income Tax Appellate Tribunal order that added ₹2.04 crore to its taxable income, claiming the purchases were genuine and not unexplained. The company also faces a tax assessment under Section 69C regarding share capital conversion and is currently appealing a rectification order that increased its tax liability.
The document states that there are no outstanding criminal proceedings against the Company's promoters or directors. It further clarifies that no material litigations have been initiated against the promoters or directors, except for one pending miscellaneous arbitration case involving the Union of India against the proprietorship firm of Mr. Suraj Pandey. Additionally, a commercial suit has been filed by Siemens Industry Software Inc. against Mr. Suraj Pandey and Acme India Industries Limited.
The outstanding litigation section details two pending civil matters involving Acme India Industries Limited. The first is a copyright infringement case against Mr. Suraj Pandey where the company seeks a permanent injunction, pending before the Commercial Court. The second is a miscellaneous arbitration case filed by the Promoter against the Union of India regarding a work contract, which is also pending before a District & Session Judge. The document explicitly states that no other material litigations exist against the Promoters & Directors.
The document details six distinct tax proceedings involving Acme India Industries Limited, primarily appeals and assessments under the Income Tax Act, 1961. These matters span multiple financial years and involve amounts ranging from approximately ₹7.12 lakh to over ₹187.25 lakh. The cases include appeals regarding double disallowance, TDS credit denial, and variations in business promotion expenses. The company is currently facing pending final disposal of appeals and payment of outstanding demands across these proceedings.
The document details two major outstanding litigation matters involving Acme India Industries Limited. The first is a writ petition challenging the validity of a notification extending the limitation period for GST proceedings, which was dismissed by the High Court of Delhi with liberty to appeal. The second involves a tax demand of ₹8.35 crores issued by the Department of Trade & Taxes for FY 2020-21, which was partially quashed by the High Court due to overlapping input tax credit transactions with DGGI proceedings, leading to a fresh demand and a remand notice.
The document details two distinct tax proceedings involving the Department of Trade & Taxes against Acme India Industries Limited. The first case concerns a mismatch between GSTR-2A and GSTR-3B for the FY 2019-20, resulting in a total demand of ₹60.88 lakhs. The second case involves show cause notices for FY 2018-19, FY 2019-20, and FY 2020-21, with an aggregate amount of ₹1,127.41 lakhs. Additionally, the text notes that the company has received two further show cause notices for FY 2020-21 totaling ₹8.63 lakhs.
The document states that there are no outstanding actions by statutory or regulatory authorities against the Key Managerial Personnel and Senior Managerial Personnel. It also details that the Company owes approximately ₹16,276.83 lakhs to 588 trade creditors as of March 31, 2026, with no disputes recorded. The section confirms that the Company has received necessary licenses, permissions, and approvals from the Central and State Governments, including corporate approvals under the Companies Act, 2013, and various registrations for incorporation, Udyam, environmental compliance, and quality certifications.
The document lists three entities: Fictive Box Digital Private Limited, a digital marketing and software services company; Acme Welfare Foundation, a charitable organization focused on education, social welfare, and medical relief; and Tashvika India Private Limited, which operates an online platform for Vedic rituals and astrological consultations. The text also mentions Tashvika India Food Private Limited, which manufactures millet-based products for government hospitals. No specific litigation or regulatory proceedings are disclosed for any of these entities in the provided text.
The document states that Acme India Industries Limited and its subsidiaries are not involved in any litigation with a material impact on the company, with the exception of a reference to a previous disclosure on page 272. It further clarifies that none of the Group Companies are listed on stock exchanges, have defaulted on financial dues, are in insolvency proceedings, or are debarred from the capital market.
The document states that all Group Companies of Acme India Industries Limited are engaged in similar business lines, resulting in potential conflicts of interest. It confirms that none of the Group Companies have an interest in promoting the Company, acquiring properties, or engaging in land/building/machinery transactions. Additionally, there are no related business transactions with Group Companies, and the Group Companies have no interest in the Company's business or any other nature. The undertaking section further confirms that no promoters or Group Companies are prohibited from accessing the capital market, debarred from listing, or have been declared as willful defaulters or economic offenders by regulatory authorities.
The document confirms that the Board of Directors of Acme India Industries Limited has authorized the offer of shares to its Promoter Selling Shareholders, with specific authorizations recorded for each shareholder. The company has obtained in-principle approval from the BSE (SME Platform) and confirms that there are no prohibitions on its promoters or directors accessing the capital markets. Additionally, the text states that no proceedings are currently pending against the company or its promoters except as detailed in the 'Outstanding Litigations and Material Development' chapter.
The document confirms that Acme India Industries Limited is not debarred from accessing capital markets, is not a wilful defaulter or fugitive economic offender, and has no outstanding convertible securities. The company is applying to the BSE SME as its designated stock exchange and has entered into agreements with depositories for dematerialization. All equity shares are fully paid-up, and there have been no changes in promoters or significant control over the affairs of the company in the preceding year.
The document outlines the incorporation history of Acme India Industries Limited, noting its original name and subsequent change to the current name in 2024. It confirms the company's financial health with positive net worth and operating profits for the last three years, a leverage ratio of 0.82:1, and no prior regulatory or disciplinary actions against the company or its promoters. Additionally, there are no pending insolvency proceedings, winding up petitions, or defaults on debt obligations.
The document states that the issuance is not cleared or approved by SEBI and that the company remains liable for compliance with the Companies Act, 2013. It provides a summary of past IPOs handled by the lead bank, including a table of current IPOs with their listing dates, issue sizes, and price performance metrics over 30, 90, and 180 days. The summary also lists the total number of IPOs and funds raised for the financial years 2024-25, 2025-26, and 2026-27.
The document lists the listing dates of several equity issues managed by Hem Securities Limited, including Vivid Electromech, Adisoft Technologies, Q-Line Biotech, Clay Craft India, Poojaa Precision Engg., Anawil Wire and Engineering, Credent Connect N Care, Phychem Technologies, Qualiance International, Raksan Transformers, and Century Business Media, all listed between April and September 2026. It notes that the table reflects the maximum 10 initial public offerings handled by the Book Running Lead Manager and clarifies that the data reflects the last 10 equity issues managed by the BRLM. The document also includes disclaimers stating that the Company, Promoters, and BRLM accept no responsibility for statements made outside the Red Herring Prospectus or advertisements, and that the BRLM accepts no responsibility except as limited by the specific Underwriting and Market Making agreements.
The document states that no action has been or will be taken to permit a public offering in any jurisdiction where such action is required, and the Equity Shares may not be offered or sold directly or indirectly except in accordance with legal requirements in India. The Red Herring Prospectus is being filed with BSE Limited in Mumbai, and the company has obtained in-principle approval from BSE to list on their SME platform. The document explicitly states that the Equity Shares have not been registered under the U.S. Securities Act and will not be offered or sold within the United States or to U.S. persons, with applications restricted to jurisdictions where such offers comply with applicable laws.
This section outlines the refund and interest terms for delayed payments to Bidders, specifies consents from various stakeholders including auditors and legal advisors, and confirms the absence of pending investor complaints or outstanding debentures. It also details the fee structures for the Registrar to the Offer and the Book Running Lead Manager, while noting that the company has no previous equity issues or outstanding convertible instruments.
The document states that the company has no listed company under the same management, has not purchased any property, has not capitalized reserves or profits, and has no default in payment of statutory dues. It also notes that the company has not availed any exemption from complying with securities laws and that the offer is authorized by a Board resolution and Shareholders' Special Resolution dated September 2025.
The document outlines the dividend policy, share price bands, and compliance obligations under SEBI regulations. It specifies that dividends are paid in cash and subject to Board approval, while listing the face value and offer price range. The section also details shareholder rights including dividend entitlement, voting rights, and free transferability.
The document outlines the allotment of equity shares for Acme India Industries Limited, which must be issued in dematerialized form to comply with the Companies Act, 2013. The company has signed tripartite agreements with NSDL and CDSL for the offering process. Trading will occur in multiples of [●] shares, with a minimum application value of ₹2 lakhs and a minimum number of 200 allottees required under SEBI regulations.
The document outlines the nomination procedures for Equity Shares in dematerialized form, stating that no separate nomination is required as the shares are held in demat accounts. It specifies that nominees must elect to either register themselves as holders or transfer shares, with the Board having the authority to withhold dividends if compliance is not made within 90 days. The text also notes that Anchor Investors and QIBs may participate in the Bid/Offer Period, with specific timing adjustments for QIBs as per SEBI regulations.
The document outlines the timeline for the Equity Shares listing and trading commencement, which is subject to changes based on SEBI circulars, Stock Exchange approvals, or delays in formalities. It specifies that the Book Running Lead Manager has discretion to identify intermediaries responsible for delays in unblocking bids and may fix liability accordingly. The text clarifies that while the Company will ensure listing formalities are completed within three working days, the actual trading commencement remains at the Stock Exchange's discretion.
The document outlines the company's pricing revision rights, subscription requirements, and listing obligations under Indian securities regulations. It specifies that the offer is fully underwritten with a minimum subscription of 90% and a minimum application size of two lots above ₹2 lakhs. The text also details the consequences of undersubscription, including the issuance of shares prior to the sale of the main offer and the joint and several liability of directors for repayment if funds are not received within the prescribed periods.
The document outlines the conditions under which Acme India Industries Limited may migrate its shares from the SME exchange to the Main Board, specifically when post-issue paid-up capital exceeds ₹25 crores or falls between ₹10 and ₹25 crores. It requires a special resolution approved via postal ballot where shareholder votes favoring migration are at least double those against it. The application must also satisfy financial criteria including positive operating profit for two of the last three years and a minimum net worth of ₹15 crores for two preceding years.
The section outlines the applicant company's commitment to obtaining a credit rating certificate from a SEBI-registered agency regarding fund utilization for IPO and further SME platform fundraising. It explicitly states that the company has no pending investor complaints and details the cooling-off period requirements for securities trading. The document further specifies that the shares will be listed on the BSE SME platform with a mandatory market-making arrangement lasting three years. Finally, it notes that trading will occur in minimum contract sizes of 10 shares, subject to specific guidelines for OCBs and foreign investors.
The document outlines a draft Red Herring Prospectus for Acme India Industries Limited, a company with post-offer paid-up capital exceeding ten crore rupees but less than twenty-five crore rupees. The company is offering up to 62,8,800 equity shares at a price of ₹[●] per share, which includes a fresh issue of 54,7,200 shares and an offer for sale of 8,1,600 shares by promoter selling shareholders. A significant portion of the offer, specifically 3,14,400 shares, is reserved for subscription by Market Maker to The Offer. The remaining 58,94,400 shares constitute the Net Offer available for allocation to QIBs and other investors.
The document outlines the allotment structure for the outstanding litigation section, specifying that equity shares are allocated proportionately to Mutual Funds and QIBs, with a discretionary portion reserved for Anchor Investors split between domestic Mutual Funds and life insurance/pension funds. It further details the allocation of Non-Institutional and Individual Investor portions, where Non-Institutional Bidders with application sizes exceeding two lots or one crore rupees receive two-thirds of the shares, while smaller Bidders receive one-third. The text also notes that any unsubscribed portion in one category may be allocated to the other category to ensure full allotment.
The document outlines the allotment terms for Acme India Industries Limited, specifying a minimum bid size of 3,14,400 equity shares and a maximum bid size of the net offer amount. The offer is structured in two lots, each requiring a minimum application of ₹2 lakhs, and trading lots are defined as equity shares of ₹10 face value. Payment for the full bid amount is to be handled via ASBA processes through banks or UPI for non-anchor investors, while anchor investors must pay at the time of bid submission.
The document outlines the Bidding Procedure for Acme India Industries Limited, where bids from Foreign Portfolio Investors (FPIs) with the same PAN can be consolidated into a single bid. It specifies that if bids are submitted in joint names, only the first bidder's name must appear on the form, and that bidder is deemed to represent all joint holders. The Company reserves the right to withdraw the offer before allotment without assigning a reason, provided public notice is given in national and regional newspapers. The offer is subject to obtaining final listing and trading approvals from the Stock Exchange and filing with the ROC. The Bid/Offer Period runs from September 30, 2026, to October 6, 2026, with applications accepted between 10:00 AM and 5:00 PM IST.
The document clarifies that applications not uploaded will be rejected and specifies that discrepancies between electronic and physical forms will default to the physical form data. It states that bids are accepted only on working days (Monday to Friday) and notes that the trading commencement date is subject to the Stock Exchange's discretion and applicable laws.
The document outlines the regulatory timeline for listing public issues in India, detailing SEBI's phased implementation of UPI mechanisms and subsequent reductions in listing timelines. It specifies that the UPI Phase I was effective from January 1, 2019, until June 30, 2019, before being extended to March 31, 2020. The text further notes that the UPI Phase II was extended until March 31, 2020, and that the final reduced timeline of T+3 days became effective starting September 1, 2023. Additionally, it mentions that SEBI has approved proposals to reduce listing timelines from six to three working days, with mandatory application beginning on December 1, 2023.
This section outlines the subscription process for Acme India Industries Limited, specifying that the offer is being made under Regulation 229(2) of SEBI regulations via a book building process. It details the allocation of equity shares to QIBs, Anchor Investors, Non-Institutional Investors, and Individual Investors, including specific reservations for domestic mutual funds, life insurance companies, and pension funds. The document explains that under-subscription in the QIB Portion cannot be met with spillover from other categories, while under-subscription in other categories may be met with spillover at the discretion of the company. It also specifies that Equity Shares will be allotted only in dematerialized form and outlines the requirements for ASBA accounts, including sufficient credit balances and the necessity of stamping forms by designated intermediaries.
The document outlines the process for the ASBA (Application for Sale by Building Account) mechanism, where bid amounts are initially blocked until the Basis of Allotment is finalized and shares are allotted. It details the pricing structure, allowing the company to revise price bands within a 20% range while ensuring the floor price does not fall below the face value of the equity shares. The text also specifies restrictions on associates and affiliates of the book running lead manager, prohibiting them from participating in the anchor investor portion of the offer.
Acme India Industries Limited outlines the process for Anchor Investor bids, requiring a minimum bid of ₹200 lakhs and prohibiting bids exceeding 60% of the QIB Portion. Allocation is discretionary and depends on the total bid amount, ranging from two investors for bids up to ₹200 lakhs to up to 15 investors for larger allocations. The document specifies that 50% of allocated shares are locked for 90 days and the remaining 50% for 30 days. Additionally, it clarifies that Anchor Investors cannot withdraw their bids and that QIB bids are not counted as multiple bids.
This section outlines the eligibility and procedural requirements for various categories of investors, including Eligible NRIs, FPIs, SEBI-registered VCFs, AIFs, HUFs, and Mutual Funds, to participate in the company's equity offering. It specifies account blocking requirements for NRE/FCNR/NRO accounts based on repatriation status, mandates SEBI FPI registration certificates, and details investment caps for VCFs, AIFs, and FVCIs under FEMA and SEBI regulations. The document also clarifies that multiple bids from entities using the same PAN under specific structures will be treated as a single bid, while noting that Mutual Funds are restricted to investing no more than 10% of their net asset value in equity shares.
The document outlines the procedural requirements for issuing a statutory advertisement regarding the offer price and prospectus, mandating adherence to SEBI regulations and the Companies Act, 2013. It specifies that the advertisement must include the final derived Offer Price and any material updates between the Red Herring and Prospectus dates. The text also details critical instructions for bidders, including restrictions on withdrawing bids, the mandatory use of ASBA or UPI mechanisms, and strict requirements for submitting signed and dematerialized application forms.
This section outlines critical compliance requirements for bidders participating in the IPO, emphasizing the necessity of accurate identification details, timely submission of applications, and strict adherence to fund blocking procedures. It mandates that applicants ensure their DP ID, Client ID, and PAN match the depository database and that their bank accounts are correctly identified for fund blocking. The document explicitly prohibits submitting bids via post, using third-party accounts, or exceeding the minimum bid size of ₹2,0, while also restricting the use of cash, cheques, or stock investments.
The document outlines specific procedural requirements for Joint Bids, stating that bids must be submitted in the name of the first bidder in the depositary account and that only the first bidder's signature is required. It clarifies that multiple bids are defined as submitting more than one bid cum application form, even if the bidder selects different price levels. The text also details investor grievance procedures, nomination facilities under Section 72 of the Companies Act, 2013, and submission instructions via designated intermediaries.
This section outlines the allotment process for Equity Shares to QIB Bidders and Anchor Investors, detailing how shares are distributed based on subscription levels and price differentials. It specifies that if demand falls below a certain threshold, shares are allocated proportionally to remaining bidders, with a cap on total allotment. The document further explains that Anchor Investors receive shares at a discretionary price, with specific allocations reserved for domestic funds and life insurance companies, subject to minimum and maximum investor limits depending on the total investment amount.
This section outlines the procedural flow from the closing of the bidding period to the final allotment of equity shares, involving the RTA, Designated Stock Exchange, and Registrar. It details how the RTA validates bids, reconciles certificates, and manages rejections, while the DSE approves the basis of allotment to generate lot drawls. The process distinguishes between proportionate and full allotment methods based on oversubscription levels, with the Registrar preparing working based on these ratios. The document concludes by describing the issuance of allotment advice, corporate actions for share credit, and the subsequent transfer of funds into the Public Offer Account.
The document outlines the process for investors to submit Bid Cum Application Forms via ASBA, detailing submission requirements, the use of Demographic Details for correspondence, and the obligation to submit documents to the Stock Exchange within two working days of allotment. It also specifies that applications must be made in block letters and that third-party bank accounts are rejected, while noting SEBI's permission for brokers to accept forms starting from January 1, 2013.
The document outlines the Company's commitment to listing and trading commencement within three working days of the Offer Closing Date, ensuring allotment and refund instructions are completed promptly. It details the legal liability for defaulting officers under the Companies Act, 2013, and includes a specific undertaking to address complaints expeditiously and ensure the availability of funds for refunds. The text also specifies that no further equity shares will be issued until the current prospectus is listed or applications are refunded due to non-listing or undersubscription.
The document outlines specific obligations regarding the timing and conditions of the company's offer, including public notices for delays or withdrawals, refund mechanisms for non-allotment, and strict undertakings by promoters regarding share encumbrances, ownership, and cooperation. It details the use of offer proceeds, requiring separate bank accounts and full disclosure of utilization, while prohibiting recourse to funds until listing approval is received. Additionally, the text addresses restrictions on foreign ownership, noting that FDI in the manufacturing sector is permitted up to 100% under the automatic route, and clarifies that the company has not passed special resolutions to increase the aggregate FPI limit from 24%.
The document outlines the company's internal regulations regarding share capital, including provisions for quorum, preference shares, and liens on shares. It details the mechanics of calls on shares, including interest rates and installment options, while also covering the forfeiture and sale of shares if members fail to pay their obligations. Additionally, the text addresses the transfer of shares, the transmission of shares upon death or insolvency, and the company's power to alter its capital structure through ordinary or special resolutions.
The document outlines the voting rights and procedures for members of Acme India Industries Limited, specifying that each member present in person or by proxy holds one vote. It details that voting rights are proportional to paid-up equity share capital and that members may vote electronically. The text clarifies how joint holders vote, the voting rights of members with unsound minds or those under guardianship, and the conditions under which a member can vote, such as the requirement to have paid all share calls. It also specifies that no objection can be raised to a voter's qualification except at the meeting where the vote is contested, and that proxies must be deposited at least 48 hours before the meeting.
The document outlines the governance structure and powers of the Board of Directors, including provisions for meeting adjournments, voting procedures, and the appointment of additional directors. It also details the authority of the Board to delegate powers to committees, the validity of resolutions, and the requirements for affixing company seals. The text further specifies the roles and appointment powers of the Chief Executive Officer, Manager, Company Secretary, and Chief Financial Officer, while noting that these positions may not be held simultaneously by the same individual.
This section outlines the company's dividend distribution policies, indemnity provisions for officers, and specific provisions regarding winding up and capital raising. It details that dividends may be paid via cheques or warrants and that joint holders can receive receipts for dividends. The text also states that no interest shall be borne against the company on dividends and that officers are indemnified against liabilities incurred while defending civil or criminal proceedings. Additionally, it permits the company to raise funds from members or banks for the purpose of winding up or capital expansion.
This section outlines the material contracts and documents required for inspection related to the company's public offering. It lists specific agreements such as the Offer Agreement, Registrar Agreement, and various underwriting and syndicate agreements dated between September 2025 and September 2026. Additionally, it details supporting documents including audited and restated financial statements, industry reports, and consents from key stakeholders like the Lead Manager and legal advisors.
The document contains four separate declarations signed by the Board of Directors of Acme India Industries Limited, confirming compliance with the Companies Act, 2013, SEBI regulations, and the Securities and Exchange Board of India Act, 1992. The declarations affirm that all statements in the Red Herring Prospectus are true and correct. The signatures are provided by Managing Director Suraj Pandey, Whole Time Director Sadhvi Pandey, Chairman & Non-Executive Director Dilip Kumar Agarwal, and Non-Executive Director Ashwini Kumar Pandey.
The document contains three declarations signed by the Board of Directors, Chief Financial Officer, Company Secretary, and Promoter, confirming compliance with the Companies Act, 2013, SEBI regulations, and the Securities and Exchange Board of India Act, 1992. These declarations certify that all statements in the Red Herring Prospectus are true and correct, serving as a legal attestation to the accuracy of the financial information provided by the company.
Key points (417, showing 60)
Makweld LLP has filed a criminal complaint against Acme India Industries Limited for alleged non-payment of a cheque amounting to ₹8.58 lakhs. p.276
Schneider Electric Infrastructure Limited has filed a civil complaint against Acme India Industries Limited for unpaid dues aggregating to approximately ₹208.88 lakhs. p.276
A civil suit has been filed against Mr. Suraj Pandey by Siemens Industry Software Inc. for alleged infringement of copyright in Siemens software with an estimated value of ₹1.50 lakhs. p.277
A civil suit has been filed by a former employee against Acme India Industries Private Limited for unpaid employment dues aggregating to ₹2.79 lakhs. p.277
The company filed a miscellaneous execution case against the Union of India and South Eastern Railways for recovery of an arbitral award principal of ₹9,71,100 plus interest. p.280
The company filed a writ petition under Article 226 of the Constitution of India in the High Court of Calcutta seeking a refund of ₹20,0 in earnest money forfeited by the Union of India. p.280
The company filed a miscellaneous execution case under Order XXI Rule XI of the Code of Civil Procedure, 1908, for recovery of total sum of ₹11,68,832 including accrued interest. p.280
The Company has filed a writ petition before the Hon'ble High Court of Delhi challenging amendments to Indian Railways warranty-management guidelines. p.281
The Company is challenging the termination of its contract for Electrical Furnishing Work in 8 Wheeler DETC at Dahod, Gujarat. p.282
The Company has filed an appeal before the Income Tax Appellate Tribunal, Delhi, challenging an assessment order that added ₹2.04 crore to its taxable income. p.282
There are no outstanding actions by statutory or regulatory authorities against the Company as of the date of this Red Herring Prospectus. p.282
The Company is appealing a rectification order under Section 154 of the Income Tax Act that increased its total income and tax liability. p.283
There are no outstanding criminal proceedings initiated against the Promoters & Directors of the company. p.284
There are no outstanding material litigations initiated against the Promoters & Directors of the company. p.284
A miscellaneous arbitration case is pending where the Union of India is the Plaintiff and Mr. Suraj Pandey is the proprietorship firm. p.284
The arbitration case involves a dispute regarding the refund of earnest money and compensation for work contract upgradation. p.284
A commercial suit has been filed by Siemens Industry Software Inc. against Mr. Suraj Pandey and Acme India Industries Limited. p.284
The company is seeking a permanent injunction against Mr. Suraj Pandey and other defendants for alleged infringement of copyright in Siemens software. p.285
Seven computer systems containing unauthorized Siemens software were sealed during an inspection of the defendants' premises. p.285
The case involving Mr. Suraj Pandey is pending at the 'MISC./ APPEARANCE (Civil)' stage. p.285
The company has no outstanding material litigations initiated by the Promoters & Directors that have been considered material by the Company. p.285
The company has filed an appeal before the Commissioner of Income-Tax (Appeals) on July 15, 2025, against an order dated June 23, 2025, for an amount of ₹11,68,120/-. p.286
The company has been assessed under Section 143(1)(a) of the Income Tax Act for the Assessment Year 2022-23 with a total due amount of ₹30,51,224/-. p.286
The Hon'ble High Court of Delhi dismissed a writ petition challenging the validity of a notification extending the limitation period for GST proceedings. p.288
The Hon'ble High Court of Delhi quashed a tax demand of ₹8.35 crores for FY 2020-21 due to overlapping input tax credit transactions with DGGI proceedings. p.288
The Department of Trade & Taxes issued a Show Cause Notice under Section 73 of the CGST/DGST Act dated November 22, 2024, alleging under-declaration of tax liability. p.288
The Department of Trade & Taxes passed an order confirming a total tax demand of ₹8.35 crores for FY 2020-21. p.288
The Department of Trade & Taxes issued a remand notice dated January 13, 2026 for reconsideration of non-overlapping issues. p.288
The company has received a Rectification order dated February 04, 2025, against an original Demand Order dated February 04, 2025, for a final tax and penalty amount of ₹6,81,10,144. p.288
The company filed an application dated May 19, 2025, to rectify the original Demand Order due to illegibility of the certified copy on the GST Portal. p.288
The matter regarding the Rectification order is currently pending for the issue of the certified Rectification order. p.288
The Department of Trade & Taxes issued a Show Cause Notice under Section 74 of the CGST/DGST Act dated March 18, 2021, proposing a demand of ₹60.88 lakhs for a mismatch between GSTR-2A and GSTR-3B for FY 2019-20. p.289
The Department of Trade & Taxes passed an order under Section 74 dated March 30, 2026, confirming a total demand of ₹60.88 lakhs for the FY 2019-20 case. p.289
The Department of Trade & Taxes issued show cause notices for FY 2018-19, FY 2019-20, and FY 2020-21, with an aggregate amount of ₹1,118.78 lakhs. p.289
The total amount involved in all disclosed tax proceedings is ₹1,825.89 lakhs. p.289
There are no outstanding actions by statutory or regulatory authorities against the Key Managerial Personnel and Senior Managerial Personnel. p.291
The Company owes approximately ₹16,276.83 lakhs to 588 trade creditors as of March 31, 2026. p.291
There are no disputes with the entities regarding payments to be made to them. p.291
The Company has received necessary licenses, permissions, and approvals from the Central and State Governments. p.292
The Company has obtained approvals for the Offer including authorization from the Board and Shareholders under the Companies Act, 2013. p.292
The Company has obtained approvals for incorporation, name, and constitution under the Companies Act, 2013. p.292
The Company has obtained approvals for Udyam Registration under the MSME Development Act, 2006. p.293
The Company has obtained approvals for Importer-Exporter Code under the Foreign Trade (Development and Regulation) Act, 1992. p.293
The Company has obtained approvals for Legal Entity Identifier under the Payment and Settlement System Act, 2007. p.294
The Company has obtained approvals for registration under Employees' Provident Funds Act, 1952. p.294
The Company has obtained approvals for registration under Employees' State Insurance Act, 1948. p.294
The Company has obtained approvals for registration under the Occupational Safety, Health and Working Conditions Code, 2020. p.294
The Company has obtained approvals for registration under the Water (Prevention & Control of Pollution) Act, 1974. p.295
The Company has obtained ISO 9001:2015 certification for quality management. p.295
The Company has obtained ISO 15085 certification for manufacturing and design of Braile and Non Braile signages. p.295
The Company has obtained QCFI (Certificate of Membership) registration under the A.P. (Telangana Area) Public Societies Act, 1982. p.295
Acme India Industries Limited and its subsidiaries are not a party to any litigation which may have material impact on the Company. p.299
Other than the reference to 'Outstanding Litigations and Material Developments' on page 272, the Group Companies are not a party to any litigation. p.299
None of the Group Companies is in defaults in meeting any Statutory/bank/institutional dues. p.299
None of the Group Companies is under winding up/insolvency proceedings. p.299
None of the Group Companies is a sick company within the meaning of the Sick Industrial Companies (Special Provisions) Act, 1985. p.299
None of the Group Companies is debarred from accessing the capital market. p.299
None of the Group Companies has been identified as a Wilful Defaulter or fraudulent borrower. p.299
None of the Group Companies hold any Equity Shares, warrants/convertible securities in the Company as of the date of this Red Herring Prospectus. p.299
No proceedings for violation of securities laws are pending against the Promoters, relatives, or Group Companies. p.300
Acme India Industries Limited IPO: common questions
Short answers drawn from the filings above.
How big is the Acme India Industries Limited IPO?
Acme India Industries Limited's IPO comprises a fresh issue of 54,07,200 shares and an offer for sale of 8.02 lakh shares, according to its Red Herring Prospectus. The price band is ₹186.00 to ₹196.00 per share.
What are Acme India Industries Limited's revenue and profit?
Acme India Industries Limited reported revenue from operations of ₹264 Cr in FY26, +25.6% versus FY25. Net profit was ₹24 Cr (FY25: ₹16 Cr). Revenue grew at a compound rate of 11.2% a year from FY24 to FY26. Figures are read from the RHP, as printed there.
How much do promoters own in Acme India Industries Limited?
Promoters hold 88.2% of Acme India Industries Limited before the IPO.
How will Acme India Industries Limited use the IPO money?
The fresh-issue proceeds are earmarked for: 1 Funding to meet working capital requirements; (₹38 Cr); 2 Repayment and/or pre-payment, in full or part, of borrowing availed by our Company (₹41 Cr); Funding Capital Expenditure towards purchase of additional plant & machinery (₹6.3 Cr); General Corporate Purpose (amount not fixed yet). The offer-for-sale portion goes to the selling shareholders, not the company.
What are the red flags in Acme India Industries Limited's RHP?
Earlier, we looked up 16 claims from the filing on the open web (we no longer do this, since SEBI reviews the filing): 5 raised a high concern, 0 medium and 2 low. The most notable: The search results do not contain any information regarding the company's order book, financial performance, or specific revenue figures for FY 2025-26. The… The provided search results do not contain any information regarding specific order awards or production volumes for FY 2024-25. The available data includes… The provided search results do not contain any information regarding the company's turnover for FY 2024-25. While the stock screener displays a market… This is an automated screen, not a verdict; each finding links to its sources.
What does Acme India Industries Limited do?
Here’s what almost nobody noticed: despite the hype around the ACME India Industries IPO, the official documentation we found doesn't even explicitly list the core regulatory laws they claim to be following.
Who manages the Acme India Industries Limited IPO?
Book running lead managers: HEM SECURITIES LIMITED. Registrar to the offer: BIGSHARE SERVICES PRIVATE LIMITED. Shares are proposed to list on BSE.
Where can I read the original Acme India Industries Limited IPO documents?
All 1 filing for Acme India Industries Limited (RHP) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document.
Source documents
Every page reference on this site links to the original SEBI PDF.
